McDonald's challenges Vikram Bakshi's reinstatement in company law appellate tribunal

New Delhi: McDonald's India on Wednesday said it has challenged before the NCLAT the order of National Company Law Tribunal (NCLT) reinstating estranged partner Vikram Bakshi as Managing Director of its joint venture, CPRL.

Connaught Plaza Restaurant Ltd (CPRL) -- the licensee of the food chain in north and east India region -- is an equal joint venture between McDonald's India and Bakshi.

Reuters

On 13 July, the NCLT had restored Bakshi as MD of CPRL after and imposed a fine of Rs 10 lakh on the US-based fast food chain, besides restraining them from interference in the functioning of CPRL.

Bakshi was ousted from the post of MD at the McDonald's franchisee in August 2013, following which he approached NCLT in September the same year. He has been at loggerheads with McDonald's over management of CPRL.

However, McDonald's took the matter to London Court of Arbitration citing the terms and conditions, where the matter is pending.

In June, 43 outlets of McDonald's in the national capital were closed following the expiry of eating house licence.

On Monday, McDonald's terminated franchise agreement of 169 outlets run by CPRL alleging breach of contract terms and payment default by the operator of the franchise in north and east India.